The Strategist

Experts: Copper is the new oil


04/16/2021 - 04:18



Copper may become the "new oil" in the future, experts at investment bank Goldman Sachs have concluded, CNBC reports. Analysts expect the value of the metal to rise as it implements "green" energy and against the backdrop of declining supplies.



Tony Hisgett
Tony Hisgett
Goldman Sachs predicts that over the next year the average copper price may rise to $11,000 per tonne. At the auction on Thursday, April 15, a ton of copper was worth $ 8.9 thousand. Overall, by spring 2021, the copper price has doubled from the lows of last March.

Citigroup estimates that about one-fifth of global copper consumption is accounted for by green energy components such as green power plants, batteries, electrical machines, charging stations and related infrastructure. Bloomberg calculates that by 2050, the length of the global electric cable network will grow by 48 million kilometers and demand for copper will double.

Earlier in April, analysts at the Wood Mackenzie consulting company suggested that oil prices would be no higher than $10 a barrel by mid-century. Experts believe such an outcome is possible if the world manages to achieve the goals of the Paris Agreement and switch to electricity. By mid-century, oil demand could be as much as 70 percent lower than it is today. It would begin to fall as early as 2023 and then accelerate sharply.

source: cnbc.com




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